Most economic data suggest recession in the United States will last for at least a few more months, Atlanta Fed President Dennis Lockhart said on Thursday.
Asked if he had seen any signs of a U.S. recovery, Lockhart told reporters: Very few so far. Most of the data that we follow appears to signal a continuing recession, at least a few more months.
Lockhart also said it was perfectly appropriate to have a discussion about reserve currencies but added: I agree with Secretary Geithner that the U.S. dollar in all likelihood will remain a dominant reserve currency but there is nothing wrong with discussing alternatives.
U.S. Treasury Secretary Timothy Geithner said on Wednesday he was open to expanding the use of the International Monetary Fund's special drawing rights.
Investors initially interpreted his remarks as an endorsement of China's proposal on Monday to eventually replace the dollar as the world's reserve currency by the IMF's SDRs.
Geithner's comments sent the dollar falling to the bottom of its range of the last five day against the euro, although it recouped some of its losses after he said the greenback would keep its status as the top reserve currency for a long time.
(Reporting by Anna Willard, editing by Mike Peacock/Victoria Main)